Domino's Delivers in Q2, but Investors Are Still Hungry
While the pandemic has negatively affected many businesses, Domino’s Pizza Inc. (NYSE: DPZ) has weathered this storm well, and shares are holding just below all-time highs. However, by the looks of it, investors may have wanted even more out of this past quarter. Even though Domino’s posted an incredible beat on the top and bottom lines, the stock still slid.
Domino’s released its second-quarter financial results before the markets opened on Thursday. The company said that it had $2.99 in earnings per share (EPS) and $920.02 million in revenue, while consensus estimates had called for $2.21 in EPS on revenue of $909.24 million. In the same period of last year, the pizza chain posted EPS of $2.19 and $811.65 million in revenue.
The company also announced that its executive vice president and chief financial officer, Jeffrey Lawrence, would be retiring after 20 years with the company. He has served in his current role for the past five years and agreed to continue serving as the CFO for the company until it finds a successor.
As for the earnings report, global retail sales increased 5.7% in the second quarter, or 8.1% excluding foreign currency impact. Global retail sales in the second quarter were positively affected by U.S. same-store sales but were negatively affected by temporary store closures in certain international markets.
U.S. same-store sales grew 16.1% during the quarter compared with the year-ago period and were positively affected by customer ordering behavior during the COVID-19 pandemic, continuing the positive sales momentum in the company’s U.S. stores business.
The international business also posted positive same-store sales results, with growth of 1.3% during the quarter.
The second quarter marked the 106th consecutive quarter of international same-store sales growth and the 37th consecutive quarter of U.S. same-store sales growth.
The company had second-quarter global net store growth of 84 stores, comprised of 39 net new U.S. stores and 45 net new international stores.
Domino’s Pizza traded up fractionally early Thursday at $414.55, in a 52-week range of $220.90 to $417.34. The consensus price target is just $397.64.